Yesterday the Subcommittee of the U.S. Congress on capital markets, securities and investments discussed the main issues related to the cryptocurrency and ICO at a special hearing, entitled “the Study of cryptocurrencies and ICO”.
At the hearing discussed the potential benefits that carry these technologies to the economy, legal support to investors and regulatory approaches relevant regulatory bodies of the United States.
In his speech Mike Lempres, General counsel and officer of risks in the company Coinbase, said that the digital currency can transform “the use of capital, innovation and the economy”, saying that their “huge potential” can be realized only through “responsible management”.
However, at this stage of the regulatory system of the United States “harm healthy innovation” because of the lack of understanding of what should be allowed and what is not, and how should we treat digital assets as securities, commodities, property or money.
There is so much uncertainty in relation to cryptocurrency and all of the technology that is beginning to have a negative impact on the market. It’s bad for everyone because technology is not going to disappear, it will simply move abroad and we miss the opportunity to get all of the benefits that it brings here in the US.
Lemper considers it very important that all the benefits that carry these new technologies have not suffered from excessive regulation and uncertainty about the “regulatory and legal errors.” According to Lampers now this area of trying to regulate almost all organs, which somehow can be associated with it: the Commission on securities and exchange Commission (SEC), Commission on commodity futures trading (CFTC), the internal revenue Service (IRS), the net of protection against financial crimes (FinCEN) and the Federal trade Commission (FTC)
According to Impresa, SEC, which is responsible for operations with securities, is considering cryptocurrencies as securities, and the CFTC, which completely controls the transactions in derivative instruments, argues that tokens are the goods. FinCEN oversees the work with cash flows KYC and AML and believes that cryptocurrency is money. Meanwhile, according to the IRS, digital currency should be treated as property with which to pay taxes. The lack of coordination is perhaps the softest expression, which could describe such a situation.
Answering a question of the Chairman of the Subcommittee bill Huizenga, Lempres said that Coinbase can’t start to work with the ICO to the moment until some sort of regulatory clarity on this issue.
We do not support any ICO at the present time, because we are not sure that what will be the regulation in this area… We are waiting for when the dust settles and the CFTC and SEC agree among themselves, before we start to work with the ICO projects.